As per the deal, Surmodics will pay $5m up front, and additional amounts related to several regulatory milestones.

Surmodics expects to record $0.49 per share charge to the earnings in the third quarter of this fiscal year related to in-process research and development expense and deal costs associated with the agreement.

Embolitech’s technology platform is claimed to have been designed to remove difficult, organized and hard blood clots. Surmodics will use its design, development and manufacturing capabilities to advance the technology platform for a variety of peripheral and vascular applications.

It is estimated that world over, more than 200 million people have peripheral artery disease (PAD). It is a serious and underdiagnosed circulatory condition caused by the build-up of arterial plaque, most commonly in the legs.

About 12 to 20% of Americans over 60 years of age are thought to have PAD. It increases the risk of coronary artery disease, heart attack and stroke and can impair the ability to walk. If left untreated, PAD can lead to gangrene and limb amputation.

Surmodics CEO and president Gary Maharaj said: “We are excited to add to our portfolio a technology that offers significant advances over the current treatment of complex, peripheral artery disease.

“The Embolitech technology offers next-generation innovation that may eliminate the need for the use of thrombolytics, reducing the likelihood of ICU time and bleeding complications that significantly affect patient recovery and outcomes.

“In addition, the technology is anticipated to reduce procedure time and the need for multiple procedures, and it does not require any additional, external capital equipment.”

Embolitech CEO Ron Ginor stated that Surmodics’ expertise and key capabilities are needed for the future development of the technology, including advances in catheter delivery and surface technologies.